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If, at the Full Employment Level of Income, the Amount

Question 97

Multiple Choice

If, at the full employment level of income, the amount that businesses plan to invest is greater than the amount that consumers plan to save, then


A) there will be an inflationary gap.
B) there will be a deflationary gap.
C) total demand will fall short of potential GDP.
D) the economy will suffer from increasing unemployment.

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